Kirin to expand health footprint with plans to acquire Australian vitamin giant Blackmores

27 Apr 2023 --- Japanese brewer Kirin is on track to acquire Australian vitamins maker Blackmores for A$1.88 billion (US$1.24 billion). Blackmores operates a natural health business in the Asia-Pacific region. Kirin plans to make it a subsidiary.

Kirin plans to acquire the shares held by all shareholders of Blackmores for cash through a Scheme of Arrangement (SOA) procedure under the Australian Corporations Act, which is one of the methods of acquiring 100% of the shares of an Australian listed company. 

The deal was brokered yesterday following a meeting of the boards of directors of Kirin and Blackmores. It is subject to the usual approvals, including the approval of Blackmores’ shareholders and the Australian Federal Court.

Kirin wants to “become a global leader by creating value across our world of food and beverages to pharmaceuticals.” Under the terms of the scheme, Blackmores’ shareholders will receive cash consideration of US$95.00 per Blackmores share, less any special dividend declared or paid prior to implementation of the Scheme.

Highly complementary
In a statement, Kirin lays out how it wants to “become a global leader by creating value across our world of food and beverages to pharmaceuticals.” 

“We are committed to playing our role as a responsible alcohol producer and achieving mutual sustainable growth by contributing to resolving social issues in the fields of people’s health and well-being, community engagement, and the environment,” reads the statement.

“We believe that we can make progress toward solving social issues related to people’s health and well-being by improving people’s quality of life and preventing diseases, which in turn can drive future growth opportunities for our company.”

“For this reason, we are leveraging the organizational capabilities and assets that Kirin has cultivated to date by establishing a Health Science Domain which is positioned in line with food and beverages and pharmaceuticals as a pillar of next-generation growth.” 

Kirin says it has expanded its business in Japan and overseas in the health science domain by leveraging its fermentation technology. 

“The acquisition of Blackmores is highly complementary to our existing Health Science business and is consistent with our strategy,” outlines the statement. 

A nutritional giant 
Blackmores was founded in 1932 by Maurice Blackmore and is Australia’s largest nutritional supplement company. Its key products and brands include; Blackmores vitamin and dietary supplement and infant milk formula, BioCeuticals nutritional and therapeutic supplements, and PAW by Blackmores, pet supplements sold in markets in the Asia-Pacific region.

Blackmores has a strong presence in Malaysia, Thailand, Indonesia, Vietnam and Singapore, first expanding into Southeast Asia in 1976. It also has a strong position as a foreign-affiliated nutritional supplement company in China, having entered the market in 2013. 

In recent years, Blackmores has also been actively expanding into new markets such as India.

Blackmores Chair, Wendy Stops, says: “The Kirin Scheme represents an attractive, all-cash transaction. The Blackmores Board believes the agreed Scheme Consideration represents appropriate long-term value for the company and an attractive outcome for Blackmores shareholders. The Blackmores Board has accordingly unanimously recommended that Blackmores' shareholders vote in favor of the Scheme, subject to customary conditions such as independent expert conclusions and no superior proposal.”

By Gaynor Selby